Chapter 22 Section 2 The Reagan Years

Ronald Reagan Ronald Reagan started out as an actor. Over 25 years, he made more than 50 movies.

President of SAG In 1947 Reagan became president of the Screen Actors Guild, an actors’ union. As the head of the union, he testified about communism in Hollywood before the House Un-American Activities Committee.

General Electric Theater In 1954 Reagan became the host of a television program called General Electric Theater. He was also a motivational speaker for the company. As he traveled across the country speaking to people, he became more politically conservative. He heard stories from Americans about high taxes. They described how government regulations made it impossible for them to get ahead in life.

Speaking for Goldwater In 1964 Barry Goldwater asked Reagan to speak on behalf of his presidential campaign. Reagan’s speech impressed several wealthy people from California.

Governor of California They convinced Reagan to run for governor of California in 1966, and he won.

1980 Election In 1980 he was the Republican candidate for president. Reagan’s 1980 campaign for the presidency appeal to Americans who were frustrated with the economy and worried that the United States had become weak internationally.

Reagan’s Promises Reagan promised to cut taxes and increase defense spending. He called for a constitutional amendment banning abortion. His positions on issues won him the support of conservatives. Reagan won the election.

Fixing the Economy Reagan’s first priority was the nation’s economy. One group of economists believed inflation was the biggest problem and raising interest rates was the solution. Another group supported supplyside economics. They believed high taxes weakened the economy and cutting taxes would allow businesses to grow and create more jobs.

Reagan’s Economic Solution Reagan combined the two ideas. He urged the Federal Reserve to raise interest rates and asked Congress to cut taxes.

Reaganomics Critics called this Reaganomics, or “trickle-down economics.” Cutting tax rates would increase the government’s budget deficit, the amount by which spending exceeds income. To keep the deficit under control, Reagan proposed cuts to social programs such as: Welfare benefits Food stamp program School lunch program Medicare payments Unemployment compensation, Student loans Housing subsidies.

Influencing the Judicial Branch Reagan applied his conservative ideas to the judicial branch. He elevated a conservative Supreme Court justice to chief justice. Reagan also nominated Sandra Day O’Connor to be the first woman on the Court.

Deregulations Reagan believed that government regulations also caused economic problems. He got rid of price controls for oil and gasoline, and energy prices fell. Other deregulations followed.

Economic Recovery The economic expansion began to take place by 1984; the median income of families climbed, new businesses jobs were created, and unemployment fell. This made Reagan very popular. He was reelected in 1984 in a landslide.

Building up the Military Reagan believed the United States had to show strength in dealing with the Soviet Union. He started a huge military buildup, which created new defense jobs. Defense spending pushed the annual budget deficit from $80 billion to over $200 billion.

Breaking the Soviet Union Reagan believed that if the Soviets tried to match the American buildup, it might put so much pressure on their economy that they would be forced to reform their system or collapse.

Reagan Doctrine Reagan also thought the United States should support guerrilla groups who fought to overthrow Communist or pro-Soviet governments. This policy became known as the Reagan Doctrine.

Arming the Contras In Nicaragua, individuals in the Reagan administration secretly armed guerrilla forces known as “contras.” U.S. officials also secretly sold weapons to Iran and sent profits to the contras. This became known as the Iran-Contra affair.

Iran Contra Affair Individuals in Reagan’s administration illegally and secretly sold weapons to Iran in exchange for the release of American hostages being held in the Middle East; profits from these sales were then sent to guerilla forces in Nicaragua.

Mutual Assured Destruction Reagan disagreed with the military strategy known as nuclear deterrence, or “mutual assured destruction.” It assumed that as long as both the United States and the Soviet Union could destroy each other with nuclear weapons, they would be afraid to use them.

SDI – Star Wars In 1983 Reagan proposed the Strategic Defense Initiative, nicknamed “Star Wars.” It called for the development of weapons that could destroy incoming missiles.

Mikhail Gorbachev In 1985 Mikhail Gorbachev became the leader of the Soviet Union.

INF Treaty In 1987, Gorbachev and Reagan signed the Intermediate-Range Nuclear Forces (INF) Treaty, which was the first treaty to call for the destruction of nuclear weapons. The treaty marked the beginning of the end of the Cold War.